Peloton will now let some customers rent its pricey bikes for $60 to $100 a month — here's how it works

• Peloton is testing a new pricing model that would let some customers rent its bikes for $60 to $100 per month, WSJ reports.
• That's much cheaper than Peloton's usual costs and could draw new users after several rough months for the company.

Peloton is testing out a new pricing model that could help turn things around for the company after several months of turmoil.

The connected fitness company will start allowing customers to rent its bikes for a limited time starting Friday, The Wall Street Journal reports.

"There is no value in sitting around negotiating what the outcome will be," Peloton CEO Barry McCarthy told the Journal. "Let's get in the market and let the customer tell us what works."

Users will pay between $60 and $100 a month for a stationary bike and a subscription to Peloton exercise classes. If they cancel, Peloton will take back the bikes with no charge.

The rentals will be available at select Peloton stores in Texas, Florida, Minnesota, and Denver, per WSJ.

If Peloton adopts the model after this trial period, it would be a major overhaul of the company's typical way of doing business. Currently, users have to buy their bikes and pay an additional $39 per month to access classes. The Peloton Bike, its cheapest, currently starts at $1,495, while the Bike+ goes for at least $2,495.

The option to rent could draw new users who might have previously avoided Peloton because of the steep prices of the bike. It could also attract new customers who want to try out the exercise equipment commitment-free, with the option to cancel anytime.

The new pricing model experiment comes at a critical juncture for Peloton. The company's stock plummeted as much as 34% in November on the heels of a grim fiscal first-quarter earnings report. Peloton had seen its pandemic popularity quickly fade, with John Foley, the company's CEO at the time, telling shareholders, "It is clear that we underestimated the reopening impact on our company and the overall industry."

Last month, Peloton reportedly paused bike and treadmill production amid falling demand. The company also laid off 2,800 workers, or roughly 20% of its corporate workforce, and announced McCarthy would replace Foley as CEO.

Peloton did not immediately respond to a request for comment.